British Tabaco..

WELLCOME TO OUR PRESENTATION

American International University-Bangladesh

Group Members : ID: Syed Mizanur Rahaman 09-13439-1 Apurvo Maistry 09-13472 Syed Sirajul islam 09-13530-1 Mahabub Alam Section: H Date: 09/12/09 Prepared for-

Hamidul Islam Department of Marketing Faculty of Business Administration

Introduction

The British American Tobacco Group is one of the world’s leading international manufacturers of cigarettes, marketing its products in almost every country worldwide. The British American Tobacco Bangladesh Company Limited (BAT Bangladesh), the biggest tobacco company of Bangladesh. 852 people work as direct employees of BATB and another 40,000 people work indirectly as farmers, distributors and local suppliers for the company.

Introduction

BAT group holds 65.91% of the total share of the company, Investment Corporation of Bangladesh owns 18.76% of the shares, Shadhin Bima Corporation, Bangladesh shilpa Rin Shangstha, Government of Peoples Republic of Bangladesh, Sena Kallyan Sangstha together holds 4.73% of the shares and other shareholders own the rest of 10.60% shares. The Registered farmers of BAT Bangladesh grow tobacco leaves for the company in Kushtia, Manikganj, Chittagong and Rangpur zones.

Company Background:

The journey of this company started long back. BATB was established back in 1910 as Imperial Tobacco Company (ITC) Ltd. In March 01, 1949 Pakistan Tobacco Company (PTC) came into existence with head office in Karachi. In order to meet the increasing demand, the first factory in the then East Pakistan was established in Chittagong in 1952. In 1954 PTC established its first cigarette factory although high-grade cigarettes still came from Pakistan. The Dhaka factory of PTC went into production in 1965. Bangladesh Tobacco Company, which was established after independence, merged with original British American Tobacco Company and became BAT Bangladesh in 1998.

Vision Extend our leadership through world class performance.

List of Market offerings:

1.Benson & Hedges2.John Player Gold Leaf3.Pall Mall 4.Scissors5.Star6.Viceroy(New product)7.Capstan

Name Size Price (TK)

Star 10 19Star 20 38

Benson & Hedges 20 98

Benson & HedgesLight

20 98

Gold Leaf 20 60 Capstan 20 50

Pall Mall 20 60

Scissors 10 20

Scissors 20 38

Pall Mall memthon 20 60

Product name , size and price

Practice Marketing Concepts:

The ‘4 Ps’All marketing is based on the fundamental ‘4

Ps’: product, price, promotion and place. For BATB , promotion is now much more limited

and very carefully controlled. Product:British American Tobacco’s first chairman, Buck Duke, said two basics for success were “devise a superior product” and “hire the best people to make it”.

Price

Price competition in business can be fierce. For example, the value for money segment of a market may grow as higher tobacco taxes make premium brands more expensive and some consumers look to ‘trade down’. BATB have reputation for quality is a strong aspect of its competitive offer at every price point and try to maintain it.

PromotionLaws governing tobacco brand advertising and it’s own restrictions on companies’ product brand communications mean that promotion now has far less relevance than the other ‘3 Ps’, and that mass media promotion is going or gone. PlaceLast but certainly not least is where consumers buy their brands. We want our brands to be where consumers want to buy them, when they want them and never ‘out-of-stock’. We want them to be in the right types of outlets - for example, for our premium brands to be in up-market bars, restaurants and hotels.

Structure of supply chain management:

Head of CORA

CSR Manager

Communication manager

RegulatoryAffairesmanager

Office manager

Managementtrainee

CSR Officer

Community relationexecutive

ExternalCommunication manager

InternalCommunication manager

ExternalCommunication officer

Industry regulationmanagement

EconomicAffairesmanager

Evaluation OF SBU

Stars Benson

DogsScissors

Cash cowsGold leaf

Question MarksPall Mall

H

H

H

L

L

L

L

HMar

ket g

row

th

Market share

Stars Benson has high growth ,high-share business or products requiring heavy investment to finance rapid growth. It will eventually turn into cash cows.Cash cowsGold leaf has low growth ,high share business or product that are established successful SBU requiring less investment to maintain market share.Question MarksPall Mall has very low share business units in high growth markets requiring a lot of cash to hold their share ,DogsScissors has low growth and low share business and products that may generate enough cash to maintain themselves but don’t promise to be large sources of cash.

Market penetration

Star

Product development

Benson & Hedges lightPall Mall-manthonGold life light

Market development

Viceroy

Diversification

(No diversification)

Implementation of Product-Market Expansion Grid Strategies:

Social marketing Activities:

Bangladesh suffer floods and cyclone every year. The company mobilized its employees and business partners to support the Governments relief efforts to the victims by contributing cash, food, medical supplies ,food crop seeds , fertilizers and building materials. Environment, health and safety (EHS) remains a core focus area for BATB. Apart from this BATB try to use less energy, reducing carbon dioxide(CO2),reducing water use, research and development, harm reduction and take part in social and community issues and recycling.

SWoT Analysis of BATB:-

Strength of BATB1.Huge company.2.Famous Brand Weakness of BATB1. Supplying goods are not at all reasonable price.2. Less survey of buyers intention.Opportunities of BATB1.Availability of product2.Supplying quality product Threats of BATB3. Government policy (Government may incise TAX on tobacco) 4. 2. People are being aware about tobacco

RECOMMENDATION:

BAT will have to advertise and promote “Winfield” in a careful and correct way. They will also have to use the marketing tool efficiently and get accustomed to new ways of selling its product in a new country. Corporate social responsibilities (CSR) should be taken seriously so that the national sovereignty, and age old custom and tradition are not harmed. They should be technologically more advanced and innovative than the rest of the tobacco companies in order to gain a positive and a successful recognition in the market scenario.

Conclusion:

It is important to remember that though BAT is enjoying monopoly in the medium and high brand segment of cigarette and turn over is also high, it will face difficulty as people are gradually becoming health conscious. Anti smoking campaign is a big threat for BAT to run the business. They should look for different other areas to invest to hedge against possible loss that are likely to occur in near future. Moreover, BATB’s latest business mission is to double its revenue in next five years, which is quite possible. But as mentioned earlier the implementation of existing laws and proposed ‘Tobacco Control Act 2000’ may create the barrier of achieving such target

ANY QUERY?

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